Europe faces imminent diesel and gasoline shortages from next month due to supply disruptions from the Gulf, Shell CEO Wael Sawan warned Tuesday, citing damage to major energy facilities and a near-halt of maritime traffic through the critical Strait of Hormuz.
The strait, which handles about 20% of global oil flows, has been severely impacted by the U.S.-Israeli conflict with Iran. Sawan told an energy conference in Houston that the crisis has already affected jet fuel supplies and will progress to diesel, then gasoline as the summer driving season begins. He described a regional shift in impact: “South Asia was first to get that brunt. That’s moved to Southeast Asia, Northeast Asia and then more so into Europe as we get into April.”
Several Asian nations are already feeling the pressure. Sri Lanka, Bangladesh, and Pakistan have reduced working hours and introduced fuel rationing. Japan and South Korea have responded by releasing oil from their strategic reserves.
While Europe is less reliant on Gulf crude than Asia—importing about a quarter of its crude and some petroleum products from North Africa—tight global supplies and fierce competition from Asian buyers are driving prices higher. Alternative sources for Europe include the U.S., Norway, and West Africa, but competition remains intense.
The supply squeeze has reignited debate within the European Union about energy supplies from Russia. Before 2022, Russia provided roughly a quarter of the bloc’s oil imports. Since the invasion of Ukraine, the EU has drastically cut those imports and plans a full phase-out by 2027. However, the only major remaining pipeline route, the Druzhba pipeline via Ukraine, has been disrupted since late January, with Hungary and Slovakia blaming Kyiv for political reasons.
Some politicians are now calling for a reassessment of sanctions on Moscow to ease supply pressures and curb rising costs. European Commission President Ursula von der Leyen has rejected this possibility, warning earlier this month that returning to Russian energy would be a “strategic blunder.”
The situation underscores Europe’s vulnerability to distant geopolitical shocks and highlights the tightrope between energy security and foreign policy principles as the continent braces for shortages that could extend beyond transportation fuels into the broader economy.
